AN ACT Relating to prepayment of federal subsidies on multifamily rental housing developments; adding a new chapter to Title 59 RCW; defining crimes; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. As used in this chapter, "assisted development" means a multifamily rental housing development that receives governmental assistance under any of the following federal programs:

(1) New construction, substantial rehabilitation, and loan management set-aside programs under section 8 of the United States Housing Act of 1937, as amended (42 U.S.C. Sec. 1437f).

(2) The following programs under the following sections of the National Housing Act:

(a) Section 213 (12 U.S.C. Sec. 1715e);

(b) The below-market-interest-rate program under section 221(d)(3) (12 U.S.C. Sec. 1715l(d)(3));

(d) Section 202 (12 U.S.C. Sec. 1708).

(3) Programs for rent supplement assistance under section 101 of the Housing and Urban Development Act of 1965 (Public Law 89-117), as amended.

(4) Programs under section 515 of the Housing Act of 1949, as amended (42 U.S.C. Sec. 1485).

NEW SECTION. Sec. 2. All owners of an assisted development shall, at least twelve months before the termination or prepayment of the federal assistance contract, serve a written notice of the termination or prepayment date on each tenant household residing in the development, and on the clerk of the city (or county if in an unincorporated area) in which the property is located, and on the state department of community development. No prepayment may be made during the notice period.

NEW SECTION. Sec. 3. The notice to tenants required by section 2 of this act shall state the date of termination or prepayment and the effect, if any, that the termination or prepayment will have upon management and tenant policies and the tenant's rent. The notice to the city or county clerk and to the state department of community development required by section 2 of this act shall state: (1) The number of tenants in the assisted development; (2) the number and size of units that receive federal government assistance; (3) the family size and estimated incomes of the tenants who will be affected by the termination or prepayment; (4) the projected rent increases for each affected tenant; and (5) the anticipated date of termination or prepayment.

NEW SECTION. Sec. 4. From the date of service of the notice under section 2 of this act until termination or prepayment of the federal assistance contract, no owner of a federally assisted development may evict a tenant, or demand possession of any unit in an assisted development, except for the following causes:

(1) The tenant has failed to pay the rent to which the owner is legally entitled and a proper eviction notice has been served on the tenant;

(2) The tenant has violated an obligation or covenant of tenancy, other than the obligation to surrender possession upon proper notice, and has failed to cure the violation after having received a lawful written notice of the violation from the owner;

(3) The tenant is committing or permitting a nuisance to exist in, or is causing substantial damage to, the tenant's unit or to the development, or is creating a substantial interference with the comfort, safety, or enjoyment of the owner or other occupants of the development;

(4) The tenant is convicted of using or permitting his or her unit to be used for any illegal purpose;

(5) The tenant has refused the owner reasonable access for the purpose of making necessary repairs or improvements required by any applicable law or regulation or for the purpose of making any inspection required by the lease or by law, or for the purpose of showing the housing accommodation to any prospective purchaser or mortgagee;

(6) The owner seeks to recover possession to demolish the assisted development in compliance with a lawful government order. Any such possession shall be taken only after proper notice has been served on the tenant; or

(7) The owner seeks to recover possession in good faith for the use and occupancy of himself, or his children, parents, brother, sister, father-in-law, mother-in-law, son-in-law, or daughter-in-law.

In any eviction proceeding against a tenant protected by this section, the burden of proof that the eviction is for one of the reasons listed in this section is upon the owner.

NEW SECTION. Sec. 5. From the date of service of the notice under section 2 of this act until termination or prepayment of the federal assistance contract, no owner of an assisted development may increase the rent of a dwelling unit in an assisted development above the amount authorized by the federal assistance program applicable to the project.

NEW SECTION. Sec. 6. An owner who violates or fails to comply with any of the provisions of this chapter is guilty of a gross misdemeanor. Each day of violation or failure to comply constitutes a separate offense.

NEW SECTION. Sec. 7. An owner who fails to provide notice to a tenant in an assisted unit is liable for any damages suffered by the tenant as a result of not receiving the notice, in an amount not to exceed two thousand dollars plus reasonable attorneys' fees and costs.

NEW SECTION. Sec. 8. Sections 1 through 7 of this act constitute a new chapter in Title 59 RCW.